The new US-China trade deal marks an uneasy truce
A truly grand pact remains some way off
WITH HIS habit of announcing trade deals only for them to dissolve within weeks, President Donald Trump is a standing reminder that talk is cheap. But on January 15th he signed a phase one trade agreement with China alongside Liu He, the Chinese vice-premier, and published its contents for the world to see. The 86 pages set out the terms of a new economic relationship between these two giants. Alongside some welcome measures, there are some howlers—and glaring omissions.
Throughout the whole, however, runs a common pattern. Clauses that are in reality concessions wrung from the Chinese are often written in such a way that they formally apply to both sides—but with subclauses specifying the actions that the Chinese are to take. For example, pledges to protect trade secrets are accompanied by new processes by which American companies can complain about breaches.
This article appeared in the Finance & economics section of the print edition under the headline "Between the lines"
Finance & economics January 18th 2020
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- What the semiconductor industry tells us about the world economy
- Oil markets shrug off tension in the Middle East
- The new US-China trade deal marks an uneasy truce
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- Economists explore the consequences of steering technological progress
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